thank you for keeping your eye out for us. he is giving her the marker, and there goes the marker. so now she is on her way like a shot, and as you know, it's a pretty good little bump. >> reporter: yeah, that's one way to put it. >> if your choice didn't win or want to check out the runners up, i will have links on my facebook page at facebook.suzanne. follow along with me here. we will show you the plans here the plan from house speaker boehner would have 1$1.2 trillin spending cuts in ten years. reid would hike the debt by $2.7

trillion now and mandate an equal amount of cuts. but the congressional budget office says the boehner plan would trim spending by $850 billion, and the reid plan by $2.2 trillion. boehner went back to the board and postponed the vote that was supposed to happen today. reid's plan can't pass the house, and not only is boehner's plan doomed in the senate, a great many house republicans don't like it either. so what happens now? well, time marches on. a never-before-seen default on u.s. debt and obligations could be just six days away, but potentially just as bad would be a downgrade of debt, and a downgrade that would say we are not reliable as we used to be. that could up the cost for borrowing for all of us.

here is richard quest on cnn international, and the smart money still says default will be averted, but downgrade, is it inevitable, are foreign investors alarmed? >> no, it's not inevitable. nothing is inevitable. overseas they believe the default will be avoided, and they do believe -- look, the words are bewildered, flabbergasted, all the words that perhaps ordinarily americans would certainly use to describe the process under way, but certainly a scene from across oceans, people are looking at supposedly the most sophisticated political economic system in the world and saying what on earth is going on? how has it got so bad? the really big fear ultimately is that there is some sort of accident. basically, a vote doesn't take

place. somebody loses, and somebody doesn't turn up, and ultimately a technical default actually happens. now all the rating agencies have pretty much said we accept if there is default, it will be short lived. this is a case of won't pay, not can't pay. randi, these are delicate times and certainly the global economy is in no fit state for these sort of shaw than begans. >> how significant is it if the rating slips? >> it's significant because it's just like our credit rating on our credit cards. if you are lower down the scale, you have to pay a higher interest rate or you may not get as much credit. if the u.s. loses it's aaa rating, and it's only one of a handful of countries, an kcanadd

australia, two of the others that never defaulted, if they lose their aaa rating, then the government has to pay more for its money. i suspect the aaa would come back quickly, but the damage would have been done. it's a bit like you can't be a little bit pregnant, like virginity, once it's gone, it's gone. i need your help. >> okay. >> for my international viewers, i need to speak to ordinary americans and find out and put them on my program. americans, what you think is actually happening? we can do it by broadband or e-mail. can i be shameless and invite your viewers to contact me so we can get ordinary american views on what is happening. >> i think you just did. sure. it's all about you, richard!

>> they can send me a twitter@richardquest. shameless, but let's face it, when it comes to default, we learned the tricks from somewhere else. >> it's not shameless. we are all part of the same team, we like to help you out. i have one more question for you. what does the world care, really, if u.s. deficits explode? >> of course they care. as it is, the u.s. is sucking in a vast amount of money to pay this deficit, this multihundred billion dollar deficit. every year money that should go to other countries or investment projects, and take the chinese alone with their trillion dollars of u.s. debt, and their total level of debt -- total level of debt is so much lower

than the united states. the u.s. has about 9 to $11 trillion of bounds out there. germany, barely a couple of trillion. the u.s. is like a vacuum cleaner at the moment, just sucking up debt wherever it can. >> richard, great to have you on the show, and a pleasure to speak with you as always. thank you so much. checking other top stories we're following. new video to show you of the terror attacks in norway. watch this. this video shot inside a store as the bomb goes off a block away. the explosion blows out part of the shops wall. moments later, you see people rushing outside. the pictures now were taken outside the shop after the blast. shortly after suspect anders behring breivik set off the bomb, he went on a shooting

campaign of teens and adults. breivik is in custody. after 102 years of helping troops, walter reed medical center is closing. walter reed also has treated u.s. presidents and members of the house and senate. it also has had scandal. four years ago investigations revealed substandard conditions for outpatient care, and improvements did follow, but then it is decided to close walter reed and move the fau to another facility. and then an olympic skier has died. peterson said he was going to take his own life in a 911 call.

he took part in the olympics in italy. there will be no cancer treatments for the 9/11 cancer victims. it's not enough evidence to say the dust and smoke cloud produced by the smoke cloud has caused cancer. some lawmakers and survivors of the attacks who originally supported the legislation have denounced the explosion of cancer. polygamist leader warren jeffs is on trial in texas for sexually assaulting a child. he is still in control of his sect. how can that be? we'll explain after the break. from generation to generation, because it offers a superior level of protection

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attorneys are due in court today to argue a motion to suppress evidence in the sexual assault trial of polygamist sect leader, warren jeffs. there was a 2008 raid on a ranch operated by his church. his followers remain loyal and obedient even though he is behind bars. here is cnn's gary tuckman. >> reporter: el dorado, texas. this tiny town is where warren jeffs is in jail and where he will stand trial. he spent a lot of time on the phone while he has been here. in the past month, how much money has he spent, would you estimate on phone cards to make phone calls? >> roughly $3,000. >> reporter: and a similar

pattern when he was in a different texas jail a few miles away. do you know how much he spent on phone cards? >> probably in excess of $10,000. >> reporter: $10,000 in the four months he was here. is that unusual? do inmates usually spend that much money -- >> no, no. >> they monitor what was said. lengthy sermons and instructions to his followers miles away, as well as to his followers in arizona and utah. if that sounds like he is still running the church from jail, he is. inside jurors say he has been ex-communicating those that disagree with him. but what it has not done is stop a growing feud between those that still believe in him and those that now believe he is a child molester.

>> i would like all of you -- >> reporter: three years ago, jessop here was one of the most trusted lieutenants. he showed me around the complex that was raided by texas rangers to show me that there was nothing bad taking place. today jessop said warren jeffs has betrayed his church. >> he described himself more than i would care to characterize it. >> reporter: he says he has diaries left by warren jeffs. he is talking about these. pictures showing jeffs embracing and kissing young girls no more than 12 or 13 years old, jessop says. >> his conduct that will ever be

sanctioned by me. there is nobody in my church that will agree with what he does. >> reporter: jeffs orchestrated a child trafficking ring from a compound in british columbia, across the border to arizona, utah and texas. >> these are serious allegations where we are dealing with the exploitation of children, young girls, for sexual reasons. >> reporter: hi, how are you? >> good. >> reporter: those that support jeffs like this 18-year-old that we met while selling coffee and juice has no dates what so yvr.

>> tell me what warren jeffs means to you? >> i don't know what you mean by that. >> reporter: how important is he to you? >> everything. >> reporter: everything to you? >> uh-huh. >> reporter: how many sister wives would be perfect in your family? >> as many as i get. credit rating agencies, you probably had to deal with them. how do their decisions affect your wallet? llphone rings ] hey. you haven't left yet. no. i'm boarding now... what's up? um...would you mind doing it again? last time. [ engine turns over ] oooohhhh...sweet. [ male announcer ] the chevy cruze with the my chevrolet app. the remote control car is finally here. well, now she's just playing with us. oh. [ horn honks ]

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credit rating executives are appearing before a house financial services subcommittee today to spell out the global ramifications of possible debt defau default. >> before you can borrow money or get a credit card, banks run a credit check on you. the rating agencies, the big three are s&p, standard & poor's, and moody's and touch, and then they give a debt that affects the borrow wur's ability to pay back the underlying loans. the safest debts are aaa rated. it's been that way for the u.s. debt since 1917 when moody's assigned that aaa rating to the

u.s. 18 other countries as well have the aaa ratings. why do these credit rating agencies matter? well, investors around the world listen to them and listen carefully. they look at them to judge where they will get the best return on their investment. for governments the ratings agencies have power over the interest rates they can send in bonds to investors. if you are a government like the u.s. trying to raise money you want to pay the lowest amount of interest to borrow that money. so who pays the agencies? agencies are paid by the borrow wur, or from subscribers that received the ratings and want to know how their potential investments can fair, and standard & poor's tells cnn the sovereign u.s. debt rating is unsolicited it, and the u.s. does not pay for its rating.

christine romans, cnn, new york. just about 20 minutes past the hour. here is a look at the top stories this hour. police are using a mini submarine and specially equipped votes off the island. suspect anders behring breivik is in custody and confessed to carrying out the attacks. in libya, the convicted lockerbie bomber attended a progadhafi rally. he is here in the wheelchair wearing a surgical mask. he was released from prison on the claim that he was dying of cancer. and dunkin' donuts is

franchised owned. the company opened 200 new franchise stores last year and have plans to open just as many this year. and then a suicide bomber kills leaders in afghanistan. there is a string of killings that are targeting high-ranking officials. to keep in balance after 50,

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today a deadly reminder of how vaolatile and explosive the situation is in kandahar. there was a suicide bomber that kills kandahar mayor.

and nic robertson interviewed the mayor just this past december, and the account and telling and prophetic. >> i got a warning that -- >> reporter: just before we reached the street, one of his guards interrupts. >> i want to bring in david who is following the wave of assassinations. the taliban is claiming responsibility for the mayor's murder. what is being said about this? >> reporter: well, ambassador crocker who is on his third day here in afghanistan is said to proceed with caution. he intends to take credit for high profile attacks, and

whether or not they are behind it is unclear. two young girls had been inadvertently killed in a road accident. and officials asked if it was a revenge killing by the girls' family members or a taliban attack. crocker said if it was a taliban attack he said it operates a sign of operational weakness. >> i think because of the success of the coalition campaign in the south, including in kandahar, we are seeing a phenomenon that is not dissimilar to what we saw in iraq. i would judge that the taliban is now damaged to the point where they can no longer conduct large-scale operations. they have had to kind of regroup and figure out what they can do,

and in some cases, that has been assassination. again, we saw a very similar pattern in iraq. >> now, crocker's comments pretty much underscores some of the dilemma here that many people are facing in terms of trying to find out exactly what this represents. it could be imblah mattic of a realization that how critical this moment really is for all sides involved. randi? >> do you have a sense from other afghan leaders from this wave of executions and assassinations, are they concerned of their own safety and security? >> reporter: being in politics here in afghanistan, there's always a danger. we spoke to a member of parliament, a women that doubles the amount of danger that they endure on a day-to-day basis. but it's clear the series of

high profile assassinations created a certain paralysis in the government. so the question really becomes a question of who you can trust x is the location that is supposed to be safest really safe for afghan politicians. >> is anything being done to increase security for them? >> reporter: again, there is not that much they can do. you can rotate your bodyguards, but at the same time, this is afghanistan and it's very unpredictable in terms of who has access to who. there are all kinds of corruption, and that's a major problem here. but in terms of what this represents, and both in terms of the taliban and the assassination attacks and attempts, but the united states

and nato and its allies are represented in afghanistan right now as large as they will be. the taliban has been beaten back in many of these areas. as a result we see the high-profile attacks like ambassador crocker mentioned. these are the areas they can strike fear in the lives of anne afghans, and politicians. critical time here. >> thank you. it has been part of american blood, sweat and tears, and today they are symbolically calling it quits. members of the american postal worker's union handle more than 165 billion letters and packages a year. that's about 34 million pounds of mail every day. ever wonder what this costs you as a taxpayer?

millions? tens of millions? hundreds of miions? not a single cent. the united states postal service doesn't run on your tax dollars. it's funded solely by stamps and postage. brought to you by the men and women of the american postal worker's union. something that was drilled in me early on, you know, college is the place for you. it's my number one goal. ♪ students like me, who take these ap math and science classes and have these opportunities, this is where the american dream lies. when i write that book, you know, i plan to dedicate it to my school. ♪ those hopes and dreams that you have, you know, they're within reach. and i'm living proof.

unlike fish oil, megared softgels are small and easy to swallow with no fishy smell or aftertaste. try megared today. about half past the hour, and here are some of the stories you may have missed. one week before the united states government could default and entered unchartered economic territory, democrats and republicans remain at a stalemate on how to reach a debt ceiling deal. the budget congressional office claims programs fall short. now a plan from senate majority leader, harry reid falls billions short of its promised

savings. deep water and strong currents frustrate search efforts for police in norway. meanwhile, police continue to perform controlled explosions at a farm associated with the bombing and shooting suspect, anders behring breivik. they took bomb-making materials for analysis and detonated the rest for safety. and olympic free style skier killed himself. jaret peterson has killed himself. police say they responded to a 911 call in which peterson said he was going to take his own life. peterson took part in the winter olympics in italy in 2006, and won the silver medal in vancouver in 2010. his signature jump?

the hurricane. and then a civil suit against hotel chains for negligence, and privacy issues. walter reed army medical center is closing its doors after serving the military's finest for more than 100 years. a formal ceremony is under way today at the hospital where a flag will be taken down to mark the inactivation of the unit. the medical center will combine services with the center in maryland, and also a hospital in virginia. the new hospital will include 345 beds for medical and surgical patients, and 20 icu beds. and 37,000 copies of her

award-winning back to black alum, with the hit song "rehab" sold this week. winehouse was found dead in her london home, you may recall, on saturday. she was 27. he is known as mini darth vader, and he is bring the force to washington. up next, the exclusive coverage of one child's newest mission. maybe he can solve the debt crisis while he is there.

talks on a debt ceiling deal to avert a government default next week have been going on pretty much around the clock in washington, but the capitol has a big visitor during the debate.

our chief medical correspondent, dr. sanjay gupta is here for more. >> i have been following the story of little max for sometime. he is a crazy cute kid. he is a mini darth vader was see there. he says he is taking the force to washington. he was born with a heart condition and required eight operations in six years, and got his car at a children's hospital, and there are only 56 in the country. and he also met kids who need medicaid to help get their care, and they realized along with his parents that some of those things are threatened with all the talks going on in washington, so he went to washington to lobby on behalf of these things, and had a meeting with senator grassly. take a listen. >> can you tell the president this? if he cuts -- if the budget gets cut, he -- he needs to realize that there are some people that

might need it. if the budget makes the cut of 75% off, it's going to be really bad for maybe his daughters. >> can you see max making a personal appeal to the president and the president's daughters. just 56 of these children hospitals in the country, and they are responsible for not only taking care of six kids, but training the few pediatricians. >> you may not hire the physician or have the program that is necessary for the child. it's not something that is going to happen overnight, but over time, the whole effort to support children's health care is weakened if you don't adequately fund it. >> both sides could have an impact here in terms of what they are imposing. it could impact the number of pediatricians, and it could have an impact on medicaid in terms

of cutting the funding. max, good luck and may the force be with you. can you see how the rest of max's congressional meetings went this weekend. he will join dr. gupta along with his parents and what he got accomplished on capitol hill. a young daughter and her mother caught up in the norway tragedy, stay in touch by texting. let me tell you about a very important phone call i made.

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here is a look at the pictures you see now, that were taken after the shop moments after the blast in norway. shortly after suspect anders breivik set off the bomb he went on a shooting rampage at a camp for young teens and young adults. another new development, the dramatic text message exchange between a mother and her daughter who found herself in the middle of 24 suspect breivik's shooting rampage. at one point, the twin on the

island texted her mom, tell the police they must be quick. people are dying here. the mom texted back, i'm working on it julie. the police are on their way. fortunately there was a happy ending to their ordeal as the family reunited a day after the attacks. we will speak to the mother and you don't want to miss that. and then the convicted bomber, lockerbie bomber, was released from a scottish prison on grounds that he had cancer. it triggered an international outrage. and he was seen at a rally. did he say anything at the rally?

remind the viewers how he ended up back in libya. >> reporter: he was released two years ago on the grounds of compassion, because it was assessed he had terminal cancer and a few months to live. here we saw him on libyan state tv last night, still alive. he was only shown for a few moments in a wheelchair. he was looking quite frail. he was introduced by a speaker at what was described as a tribal meeting in support of the embattled libyan leader, moammar gadhafi. he was introduced as a, quote, victim of cologneammism. every since he was released back to the government here, he was treated like a hero here. >> what do we know about his health? he had been given three months to live, and now we are at the two-year mark or so. how is he doing?

>> reporter: it appears he is alive, and he's part of an effort here by the gadhafi regime to attract support, and being challenged by three fronts on the ground by anti-gadhafi rebels. and the british foreign minister came out denouncing the medical evaluation used to release him, calling it worthless. just a day or two ago, britain's top diplomat said that it would be possible to work out some kind of a deal with libya in which gadhafi could be allowed to stay in libya if he agreed to step down from power. that seemed to be a step

backwards from britain, which was repeated by france. today britain's top diplomat came out more forcefully announcing he would hand over the libyan regimes embassy in london to the rebel counsel in the east in the city of bengazie. announced more than $100 million worth of frozen libyan government assets would be given over to the rebels. we have seen a growing number of western governments including the u.s. government announce similar plans to recognize the rebel council as the only legitimate authority here and announcing plans to hand over hundreds of millions of dollars to the rebels, and that of course is a proposal that the embattled government here in tripoli rejects.

>> we appreciate your reporting. it's about 15 minutes before the top of the hour. here is a look at some of the top stories we're following. a federal judge threw out a lawsuit that sought to fight funding for stem cell research. he said the guidelines do not violate federal law and dismissed all legal challenges pn and then in mexico the judge sentenced a 14-year-old in the forechuring and murder of four people. the u.s. citizen was allegedly a hitman for the drug cartel. he admitted killing four people by cutting their throats. he was sentenced to three years in a correctional facilitfacili maximum in the law, because of his young age. and then borrowed more than $500 billion from major banks in the event there is no solution to the debt ceiling impasse. it shores up the cash reserves ahead of possible market

disruptions. it could mean a new way to treat cancer patients. this was discovered by a 17-year-old student. how does it do that? well, to get there, a lot of complicated engineering goes into every one. like variable valve timing and turbocharging, active front grille shutters that close at high speeds, and friction reducing -- oh, man, that is complicated. how about this -- cruze eco offers 42 miles per gallon. cool? ♪

cancer, that diagnosis can be terrifying, devastating, and, yes, life changing. take a look at the numbers with me. the national cancer institute statements 22,000 women will be diagnosed with ovarian cancer. more than 15,400 will die. these are your moms and sisters. we want to talk about the fight against cancer, and one incredible 11th grader whose

research could help with cancer. her discovery won her the grand prize at the first google science fair earlier this month. i and we actually figured out this new way to actually immove the treatment so it has huge implications for chemotherapy and cancer research. >> from what i understand, you discovered why cells would actually reject the chemo. >> we actually figured out that

this one protein in the cell called a & p may actually play a role in cancer cells becoming resistant to this drug. and there's this way to actually manipulate this protein to make cells actually respond to the drug less than. >> where can this research go? how far can you take it? can you continue working on this. >> there are a lot of options still available to do with this project. i mean there's the clinical aspect where you can actually treat patients using the research that we have done and actually make chemotherapy more effective. and there's also the research aspect, where you can research what this protein does in a little bit more detail and maybe figure out how those cells become resistant in the first place. >> i think the most exciting thing that you've worked on, but i want to let our viewers know exactly what you've worked on. in second grade, you tried to

make blue spinach, that would attract kids instead of the green stuff. is that the idea? >> that was my idea, as a second grader, it seemed like a pretty good idea. as i grew up, i realized probably not. >> i'll give you that. and in the fourth grade you invented remote controlled garbage cans. what is your ultimate dream? >> my ultimate dream for my career would be to follow an mdphd track as a degree and then become a medical researcher along a practicing physician and sort of combine my interests in treating patients and coming up with treatments for patients. >> you came into some cash as a result of winning this contest, about 50,000 and you get a big trip to the gallopagos.

>> i'm going to use the money towards college because i'll need it. but hopefully i'll be pursuing an undergraduate degree in buy lodge. >> this also has a personal connection for you as well? >> both of my grandfathers actually passed away from cancer, my maternal grandfather passed away from cancer a few years ago which sparked me into intoi i going into cancer research. >> we're happy to have you on the show and share your research with our viewers. thank you so much and congratulations. do you have your trophy with

you. >> i do actually. >> hold it up before we let you go. oh, nice, very impressive. >> and it's made out of leggos. >> it's made out of leggos, very nice. >> thank you so much, for more on chgo to cnn.com. the national congressional budget office isn't really a fan of the plans. we'll tell you why just after the break. ♪ [ male announcer ] what is the future of fuel? the debate is over. ♪ lexus hybrid drive technology is designed to optimize any fuel source on the planet. even those we don't use yet. because when you pursue perfection, you don't just engineer a future-proof hybrid system.

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liberty mutual insurance. responsibility. what's your policy? welcome back, it is time now for a cnn political update. joe johns joins me live from the political desk in washington 1/washington 1/ washingtowashington 1/. hi, joe. >> so just how ugly is it on capitol hill today? pretty ugly for sure. republican members of the house of representatives are calling out republican staffer who is apparently emailed outside groups asking them to lobby the congress against republican house speaker john boehner's deficit reduction plan, we also say these same members are

criticizing the republican member of congress who was supposed to be supervising these employe employees, the capitol hill unit here at cnn is following all the chaos on the hill today. meanwhile, we're watching the boehner plan closely after he had a set back last night as you know as and as we have been reporting. his plan has come up with savings that was supposed to be able to be achieved in the next five years. he had to take it off of the floor of the house of representatives. harry reid had a similar plan, his plan was to create something like $2.7 billion, but the congressional budget office took a look at that just as it looked at the boehner plan and decided the reid plan would save something like $500 billion less. meanwhile on capitol hill today, the credit rating agencies took

some questions from congress about a possible downgrade of the credit rating and the president of standard and poors said he did not believe the united states was going to default. >> do you honestly believe that the united states could default on its debt? >> our analysts don't believe it would. and changing a rating doesn't mean it will default. aaa rating means there's a very low probability of default. that's all it means and if you change the ratings, it means that the risk levels have gone up, it doesn't mean it's going to default. >> he also said the larger problem in his view is how the united states government deals with the growing debt over the long-term. that's the latest from capitol hill. >> your next update from the greatest political team on television is just an hour away.

a new hour brings a new chapter in the long and storied life of an american institution. for 102 years, whenever this country went to war, walter reid was there for our wounded warriors, it's still going to be there in a different form in a different location for generations to come. but today the army retired the facility's flags ahead of its move next month to bethesda. in 2005, a military panel decided to shutter the hospital that's treated privates and presidents and every rank in between. money was the main reason, but walter reed also was showing its age. in 2007, and an necks was found to be ridden with vermin and mold and the highest ranks of the pentagon had to answer for it. but i want to look at the challenge of walter reed living up to its path with barbara

starr at the pentagon and ted bauer, he's a u.s. marine, i will not say former, there's no such thing. but todd, what does walter reed mean to the men and women in uniform? >> the best way to sum it up is that it's history, but at the end it's something that's very powerful because when you first arrive at walter reid, obviously you've been injured, and to be able to make that next step and see where you're going to move on in life makes it a scary place, but it's the best place that the military has to offer. >> tell us about this decision to pack it up and move it. what's behind this? >> this has been going on for years, this is part of what the pentagon calls base closure, they try and shut down either out of date or inefficient bases. in the case of walter reed, it was an aging facility showing its age, there was plenty of new medical technology that needed

to be brought in for the troops and they decided rather than spending the money refurbishing the the hospital, they would move it to bethesda, build a new facility, consolidate everything, this facility has not only treated military veterans but tens of thousands from the wars in iraq and afghanistan. it was time to move ahead and start with a new facility. but the facility they are opening up has now doubled in cost from what they originallieoriginal lly estimated so it's not clear how much they're saving. >> do you think walter reed is a symbol of commitment to our troops? >> in 2007, as you said, a lot of people had to answer for what was going on over there.

and it's something we have seen a commitment from our government to take care of these service members and very importantly, their families as well. we have had 18,000 folks go through walter reed alone. with the new facility at bethesda, they're going to be able to have more knowledge and understanding about things such as traumatic brain injury and post-traumatic stress and see these injuries that we have never seen before because of advances in medical technology and be sure they're taken care of on all fronts. >> do you think the military is happy about this. >> walter reed has some incredible history, the old statues t stories from there. i was surprised today at the ceremony when i saw actually tears coming to people's eyes as this gorgeous, magnificent facility shuts down. they're basically going from a 1967 corvette which is beautiful and they're getting a 2010

sports car which is really exciting to see. >> we talked about the decision and what was behind the decision to close up shop there at this facility. but how much do you think the 2007 scandal with the mice and the mold might have played a role in that? >> i think they moved beyond that a bit. by fixing walter reed up and fixing up the patient housing areas for outpatients once they got out of the main ward. but make no mistake, veteran's groups are keeping an eye on this whole new bethesda situation very carefully and on the wounded care facilities across the country, because there's so many of them now, a lot of people may think the wars are winding up. but there are tens of thousands of troops across this country who need help, who are in wounded care facilities and people are keeping a really close eye on them to make sure that kind of scandal doesn't repeat itself. >> todd bowers thank you very

much. a week before the u.s. treasury runs out of money, the plan from house speaker boehner would pear a trillion dollar hike with $1.2 trillion in spending over the years. senate majority leader reed would hike the debt by 2.7 trillion now, but the congressional budget office says the boehner plan would really trim spending by only $850 billion. the reed plan by 2.2 trillion. boehner's gone back to the drawing board and postponed a vote. reed's plan can't pass the house and not only is boehner's plan doomed in the senate, a great many house republicans don't like it much either. time marches on a never before seen default on u.s. debts and

obligations could be ten days away, but just as bad would be a downgrade of american debt. that could force up the cost of borrowing for all of us and the fallout, well it could be global. last hour i asked my london colleague richard quest whether foreign investors are alarmed. >> if you want the adjectives, the words flabbergasted, bewildered, alarmed, all words that perhaps ordinary americans would certainly use to describe the process underway, but certainly a scene from across oceans, people are looking at supposedly the most sophisticated political economic system in the world and saying what on earth is going on and how has it got so bad? the really big fear ultimately

is that there's some sort of accident, somebody loses, somebody doesn't turn up and a technical default actually happens. all of the rating agencies have pretty much said that we accept that if there is some default, it will be short lived, this is a case of won't pay, not can't may, but these are delicate times and is global economy is in no state for these sort of shenanigans. >> and there's much to be told about where this whole mess is going to end up. you're looking at a live picture there at the white house and the press briefing room. we're going to monitor that white house briefing and see if we can find out any new nuggets for you if there's been any movement. meanwhile checking some other top stories, new video to show you of the terror attacks in norway. this video shot inside a store just as the bomb goes off a block away. as you can see the force of the

explosion blows out part of the shop's wall, moments later people rush outside. the pictures you see now were taken outside the shop moments after the blast. you can see blown out windows, damaged doors, broken glass all over the streets there. anders brevick actually shot off the bomb. a total 76 people were killed in the attack. there will be no payment for cancer treatment for workers involved in the 9/11 attacks that's the controversial describe by the world tried center program. there's nothing to say whether the dust and smoke cloud produced by the attack has caused cancer. the report took effect in january. that measure provides over 4 billion over the next five years to monitor, treat and compensate people who were exposed to the fumes and dust. some lawmakers and survivors of the attacks who originally

supported the legislation have denounced the exclusion of cancer. in afghanistan, another deadly taliban strike against local government t mayor of the southern city of kandahar was assassinated today by a suicide bomber who hid explosives in his tur begin. he was killed in a city hall. earlier this month, the half brother of hamid karzai was gunned down by a long time bodygua bodyguard. also several top officials in kandahar have been killed by olympics. salt lake city police say jared peterson died of a self-inflicted gunshot wound, his body was found off interstate between salt lake and park city, police say they responded to a 911 call in which

peter said he was going to commit suicide. peterson took part in the olympics in 2006. his signature jump was called the hurricane. the man accused of killing dozens in two attacks in norway last friday was an admirer of someone you first heard about right here on cnn. how a so-called reformed terrorist plays into these attacks next. [ melody ] the bar is raised for everybody in an ap class, from the teachers to the students. i had a student the other day that said... "miss stacy, this class is changing the way that i look at things." sparking that interest and showing them that math and science are exciting... it's why i teach. ♪ i know they can, even when they think they can't.

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unlike fish oil, megared softgels are small and easy to swallow with no fishy smell or aftertaste. try megared today. new information today that the man accused of killing dozens of norwegians last friday was an admirer of someone cnn

investigated. you found out that his story didn't really add up? >> it didn't add up at all which is what is so troubling about this connection in norway, because not only does schubot reach out to people in norway, shut ins perhaps of a man who we believe knows nothing about it. also because schubot is on a tour of the u.s. he preaches to law enforcement about the dangers of islam. if you listened to him, you would believe that we are in a holy war. >> i think we are at war with islamic fundamentalism and islamism which stems from islam. no one can deny that islamists basically invaded christiandom.

>> islamic terrorists turned ultraconservative christian. he is a darling on the terror circuit, the church and university circuits and, yes, he believes the war on terror is a holy war. he portrays himself as a man converted and on a mission, once a jew hating, bomb throwing terrorist, now a devout christian convert warning the world islam is out to destroy you. >> if you listen to the unbelievers, then smite off their necks. what about that do you americans

not understand? >> he speaks to a crowd of cops and emergency responders at this south dakota homeland security council, trust no muslim, especially those who organize. >> know your enemy. know your enemy. all islamist organizations in america should be the number one enemy. all islamist organizations. you got that on camera? yes. >> reporter: he is being paid $5,000 plus expenses to speak here with your tax dollars. he was also given a rapid city police guard during his time in the city. a nice day's work, judging by his website where he highlights more than three dozen speak engagements, schubot gets a lot of work. >> being a terrorism expert is a cottage industry since 9/11.

the industry has spent billions of dollars on anti-terrorism since 2006. some of the so-called experts who go around the country teaching and in some cases preaching about terrorism and the dangers of islam are not quite what they seem. people, it turns out, like walid schubot. >> the first thing i want to ask you is what is the purpose of your talk this morning to these cops and emergency responders here in south dakota? >> well, being an ex-terrorist myself is to understand the mindset of a terrorist number one. >> an ex-terrorist, it's walid schubot's claim to fame. throwing a fire bomb on the bank's roof. the problem with the story, with a lot of shoebot's story is that

cnn could find no proof of any of them. and neither shoebot. >> you threw explosives on top of them? >> yes, i did. >> reporter: no record. cnn's jerusalem bureau bent to great lengths trying to verify shoebot's story, but not finding anyone who could remember a bombing. we contacted the bank headquarters in tel aviv, asking officials to search records, no records found. and israeli police found no record anyone ever threw a bomb at the branch of the bank. why would the bank not have a record? why would the israeli police not have a report? >> why would the israeli police not have a record? i don't know. check the dates.

>> reporter: shoebot says he was arrested and served two weeks in prison. i would think there would at least be an arrest record, they held you for two weeks. would the united states know you were in prison? >> how about me and you go to the prison and extract the records. the records are there. >> reporter: okay, would you be willing to do so? we did and the israeli detention center could find no record of detaining anyone with the name walid shoebot. obviously you can see why people are critical of your claims, there's a whole lot of gaps in your story. >> there's no gaps. >> reporter: we don't have a bank bombing, because it turns out walid shoebot even on his own admission was never charged. >> i was there a few weeks. >> reporter: was there a charge? >> no, i was a u.s. citizen, i was born by an american mother. the others ended up in jail, i ended up being released. >> reporter: there's another problem, his family, in the neighborhood where walid shoebot

grew up, neighbors say he was just a regular kid and walid's fourth cousin goes even further. >> reporte . >> there are only two banks and walid never had any connection with those two banks. out of experience, i am one of the people who are considered a responsible man in the area of bethlehem and i have never heard of walid being a terrorist. he claims this for his own personal reasons. >> what personal reasons? in part two, we look into the money that walid shoebot is making on this speaking tour, he's making quite a bit of it but even that is shady as to how he's dealing with that money and where it is going. >> you think about the connection between the norway

shore brevick and walid shoebottleshoebot. >> 14 times he cuts and pastes the teachings of walid shoebot into this manifesto. we have no idea that these two men ever met, ever talked to each other, but we do know that this suspect in norway was an avid reader of everything that walid shoebot put out and continues to put out on his website. >> and we never knew he was a fraud? >> and the churches that ask him to come and speak, nobody has gone back to see if any of it is real and we have found out none of it is. every move you make online is being watched and recorded. is this information safe from malicious hackers?

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there are companies out there tracking every move you make online. what you do in your spare time, what you buy, what you visit, seemingly everything. is this information safe? that's the question. chad myers reports in depth. >> reporter: did you know that companies you have never heard of track every website you visit and keep a record of everything you do online? that's right. everybody who visits the internet has a digital fingerprint, a unique profile that's built by these specialized companies. >> we actually don't really know who their clients are so they may be selling this technology to banks, they may be selling it to online advertising companies,

and that's the biggest concern. >> peter ekkersly is a technology gist with the electronics frontier foundation a digital civil liberties groups that defends rights of on the internet. he says that it violates every act of your privacy. >> you should be able to read what you want in private without someone looking over your shoulder reading along with you, without -- as you pick up a magazine to read it, you don't want the magazine to be reading you. >> reporter: last month a bill was introduced to track your online movements. what it would require is that internet browsers would have an option up here to say do not track. do not track me. ekkersly says this is already there, the technology already exists, all we need is congressional action. >> i think the scary thing is people don't understand what's out there about them personally that's linked to their online digital fingerprint. >> reporter: don jackson the tlekt for of threat intelligence

for secure works says digital intelligence is used for advertising campaigns and political messages, but he has an idea that they will be used with malicious intent. >> what we're doing is trusting these companies with the security of that information, we're entrusting them to guard that information. we don want anybody to be able to break into that system and use it, but once -- >> reporter: what if i'm at a wireless place like this and people are just everywhere, and everybody's logged in. can that guy right there be tracked? >> absolutely. >> he is being tracked right now, so everything you do online, if you're using a public website or any kind of online service, they're tracking everything that you're doing. >> reporter: can data be wrong? can somebody get something incorrect and is it a big deal? >> your fingerprint can be manipulated by criminals. that's one way it can be wrong. another way it can be wrong is that it can be cross linked.

there's really no mechanism to correct that. you can't remove the information, there's currently no channel, no way to final a complaint. >> reporter: security experts are concerned that right now there's no practical way to stop companies from using this technology and that as scary as that is, the best defense is to be aware that everything you do online is being watched. >> keep your anti-virus up to date, keep your computer up to date. but for the most part, once the information leaves your computer, the website that you're visiting can track it. and the white house press secretary just talked about how firm that august 2 default deadline really is, there he is in the white house briefing room still talking about it. we'll hear from him next. i couldn't conceive this as a heart attack.

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here's some of the top stories you may have missed. a federal judge has thrown out a lawsuit that sought to block human embryonic stem cell research. the u.s. national institutes of health guidelines on stem cell

research do not violate law. walter reed is closing its doors after 145 years. a flag was taken down to mark the inactivation of the unit. police in utah say a u.s. olympic free style skier has taken his life. salt lake city police say that jared peterson died of a self inflicted wound. police say they responded to a 911 call in which peterson said he was going tyke his own life. peterson took part in the winter olympics in 2006. sales are skyrocketing for the albums of the late singer amy winehouse. 37,000 copies of her award winning back to black album with

the hit song rehab have sold the week, winehouse was fund dead in her apartment. just moments ago white house press secretary jay carney talked about how important it is for the nation to avoid default. >> and while at midnight on august 2, we don't all turn into pumpkins, but we has a country lose our borrowing authority for the first time in history. >> we are keeping track of all of the developments and of course will bring you any updates. can you smell it? that fresh smell of turf is returning and that's because the players are back. we'll take you live inside the baltimore ravens training camp. " i was put on an aspirin, and it's part of my regimen now.

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if you open it, they will come for football players pulling up to work never felt so good now that the nfl lockout is over and training camps are ready for practice to begin. carolina costello is in owing mills, montana. >> reporter: it's pretty exciting here although they're not playing on the field today, they're actually inside that building. the ravens quarterback is in there along with many other ravens players, they're holding meetings today, sort of getting the ball rolling. every so often a player will pop-out frankly because we asked him to come out and give us something. ed nixon was kind enough to do

that a short time ago. we asked him how he's been prepare fog for coming season. here's what he said. >> all i can do is be the best player i can be. so if i'm in that starting spot, i'm going to go out every day and train to be that starter like i did last year. >> reporter: and let me expound on that, he spent most of his off time in oregon, he went to oregon state so he was training there at the university. he had college quarterbacks throwing him some passes and things like that so he says he's in good physical condition and he just may take over for todd heap and those are some mighty big shoes to fill. >> did you get your tickets yet, carol? >> reporter: i wish i could afford them. but the union is meeting tomorrow and the players will be meeting for a unification meeting, because they resolved the union for the sake of the

labor deal. but they'll be meeting on friday morning and we'll have pictures of that. inside an oslo store moments before a terrorist bomb explodes. new video of the attack right after this.

in norway, people in the shop enjoying some free time as they considered what they might buy. a second later they're showered by debris from a huge bomb blast. this video shows what it was like when that terror bomb went off in oslo last friday. it was shot inside a store just as the bomb went off. as you can see, the force of the

explosion blows out part of the shop's wall, moments later people rush outside. the pictures you see now right here were taken outside the shop moments after the blast. you can see the blown out windows, the damaged doors and broken glass there in the street. shortly after suspects anders brevick allegedly set off the bomb, he went on a shooting rampage at a camp for youth and adults. in afghanistan, another deadly taliban strike against local governments, the mayor of the city of kandahar was assassinated today by a suicide bomber who hid explosives in his turbine. he was killed during a city hall meeting, his death is the latest in a series of recent high profile assassinations claimed by the taliban. earlier this month, the half brother of president hamid karzai was gunned down by a long time bodyguard. also several top government

officials in kandahar have been killed recently by militants. the only person convicted in the bombing of a u.s. jet liner over lockerbie scotland has appeared on libyan television. al-megrahi took part in a gadhafi rally. also britain recognized the group fighting to overthrow gadhafi. it's prove that megrahi's release from polirison. as the dealt ceiling battle rages on in washington, how is your personal debt looking these days, no need to call in a budget committee to get you out of the red. we have five very simple steps that you don't want to miss. we'll give you some help next.

so with all this talk about congress not being able to solve the debt crisis in this country got some of us thinking, how can we as individuals cut some of the fat from our own personal budget. in today's taking the lead segment, we're looking at five easy ways that you can actually reduce your debt at home. so take a look here. first when in doubt write it out. most people have no idea how much credit card debt that they actually have. do yourself a favor, look at all your credit card balances and personal loans and write down how much you owe each one. then you can better attack how you can feasibly pay some of

that credit card debt down, which really is the goal for all of us. second adjust your tax withholdings at work, if you're one of those people who repeatedly gets large tax refund checks is that you're allowing the government to hold on to your money interest free. by adjusting your w-4 withholdings you're getting more money in your paycheck that you can use to pay down that debt. third, sell some of your stuff, we all have too much stuff, don't we? have a garage sale. not only will this give you some extra cash to pay down your debt, it could also help you clear some of the clutter you may have around the house. fourth, find some extra cash just lying around and use it to pay off some bills. i'm serious, really, about this one, there is a lot of money out there that has yet to be claimed from unclaimed income tax refund checks to forgotten savings and

checking accounts. there really is money out there that could have your name on it. searching for unclaimed money is free so don't get roped into those companies online who want to charge you for this. they're just looking for money. fifth pay more than the minimum payment on your credit card. pay as much as possible, even if it's just $10 to $20 bucks extra. it is about 43 minutes or so past the hour and here's some of the top stories that we are keeping an eye on. dunkin' donuts -- shares started trading at 25 bucks apiece. most of the dunkin' stores are franchises. the company opened 200 new u.s. stores last year and there are

plans to open just as many this year. just in case, the state of california has borrowed nearly $5 billion from major banks in the event there's no solution to the debt ceiling impasse. a latex mask in the likeness casey anthony is sparking a bit of a bidding war on the auction website ebay, there's been 84 bids so far and the price is just over $24,000 with less than seven hours to go. the seller from l.a. claims only nine were made with this one being number six. earlier this month a florida jury found amount not guilty of murdering her 2-year-old daughter. public schools sensoring the internet, some call it a modern day book burning, others say it's necessary to protect children from violence and pornography. we'll get to the bottom of it next. [ barks ] ♪ [ cat meows ]

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you may not know it, but a number of states haven acted legislation to filter or block harmful content from school

commuters. according to usa today, new york city's department of education blocked websites for what it called obje eed objectionable c. jennifer copalman hud a lawyer, and from sacramento, a professor of education at new york university and on the phone, the president of enough is enough, donna rice hughes from charleston, south carolina. should anything on the web be sensored at a public school? >> yeah, i don't like any sort of censorship of that kind. i think when you start to put software on a computer that blocks groups of sites or, quote, unquote objectionable content then their necessary content tends to get blocked. and kids can find their way

around blocked content by using other words and things, and that becomes a time waster. >> what do you think about the censorship of these online sites at school? >> i actually agree, randi. i think that censorship is extremely difficult. kids are much more advanced about how to navigate the internet than most of the adults are and they will find ways around it. i think if there are reasonable ways to control access to dangerous sites then we should try to employ them. but i think censorship is a slippery slope and once we start down that path, then we end up really infringing on the rights of our children. we should want them to have full access to information, but also to use that information responsibly and that's where i place the emphasis is how to be sure that they are responsible in their use of the internet and the information that they're seeking. >> donna, do you see this as censorship? >> no, i don't see it as

censorship. censorship is prior restraint by the government. and this law determines the internet protection act with an attempt to actually have schools be able to effectively manage children's internet access and to be able to filter out pornography and that's what this entire law is about. and your other two guests did say something they do agree with, and that is kids can get around many of these filters which is why it's so important that i also think the schools should consider using monitoring technology additionally. but schools certainly have the right to manage their -- the internet access and how they choose to manage it really is up to them. but the key thing, from what i understand, this whole matter in new york was about is completely blocking off entire websites like social media sites such as facebook and youtube. and now there's some great, great tools that will allow schools and parents to better

manage that access so kids can better manage the tools, if you will, and manage the pitfalls. >> in pinellas county, florida, teachers aren't even able to communicate with their students online via facebook or anything like that, but the internet is not going away. so who should draw the line here? should be this a local issue, a state issue, a federal issue? what do you think? >> i think a school issue is a better idea than taking it bigger, but i would hope that the schools would make the right decision and not block any access really, and have some teachers monitoring the students' while they're online. nobody should be doing inappropriate anything on facebook or twitter or wherever anyway. if there's no inappropriate behavior, there's going to be mo

problem. >> what is the message here to these kids, to these students? >> the message is that the adults are afraid of technology they don't understand and they need to -- i agree again with the last speaker, they need to adapt with the times. you know, we have kids bringing smart phones to schools and schools telling the children they will take them away rather than figuring out how to use those smart phones as a device for learning. technology is enhance learning and what we need to do is make sure that the adults are as comfortable and as well trained as the children are so that they know how to use those to support learning and to facilitate learning, trying to limit kids access is a losing battle and it's not one that's consistent of our goals of having kids become more engaged in learning. >> donna, shouldn't the education about this really start at home? >> advocation should absolutely start at home and we are actually -- our whole mission is

to make sure that kids are safe on the internet and are using it safely and parents are certainly the first line of defense. and in fact, we developed an entire curriculum to educate parents as well as educators so that they can understand the dangers and then be better equipped to manage that child's internet access so they can use it safely and effectively, whether it's a tool or at home. because the internet, everybody's right, it's here to stay, it's a fantastic tool. but there are some real dangers and i do think this should be a local issue, a school issue, they have every right to choose how they want to manage the issue and i just hope that they don't throw the baby out with the bath water and that's the key thing that we're talking about. >> donshannon travis part of th best political team on television. and shannon, the tea party not backing down when it comes to

its opposition to raising the debt ceiling what, tease story? >> you're absolutely right, randi, the tea party is here on capitol hill basically warning the republicans they do not want a watered down deal when it comes to these debt ceiling negotiations. they're urging republicans to hold the line, that's their words not mine, hold the line, they want this cut, cap and balance to stay. they want for that to be the deal. they say that's the only way to fix the nation's financial woes. that is the plan that would cut federal spending severely, deeply, would cap federal spundispund i spending at 18% of the gdp. take a listen at what senator jim demint of south carolina, he's a big tea party booster, said today at the rally. >> folks we have got to hold the line, we have got to stand strong. we can't let down the people who elected us last november.

>> so again this notion of holding the line, randi, but meanwhile, another senator, senator john mccain of arizona, he took to the senate floor earlier today and he basically said it's foolish, again, his words not mine, it's foolish for the tea party to think there will be a balanced budget amendment deal in the next few days before the debt ceiling deadline. take a look at what senator mccain had to say. >> to hold out and say we want -- won't agree to raising the debt limit until we pass a balanced budget amendment to the constitution, it's unfair and maybe some people who have only been in this body for six or seven months or so really believe that. others know better. >> tough words from senator mccain to the tea party right there randi as both sides are battling on capitol hill today. >> shannon travis, appreciate it, thank you. up next why the public appearance of one man in libya has so many people angry and,

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time now for my xyz and i want you to take a good look at someone. remember this guy? that's al-megrahi who supposedly had three months to live when he returned back to libya. there he is with a surgical mask

at a pro government rally in support of moammar gadhafi. first of all, why is this guy still alive and what the heck is he doing out there supporting gadhafi who the u.s. has said must step down s that a slap in the face or what? al-megrahi is the guy who served about eight years of a 12-year sentence after being convicted in the bombing of pan am flight 103, just four days before christmas in 1988. 189 of the victims were american. he was allowed to return to libya supposedly to die. he has prostate cancer. the scottish government accepted doctors advise that he had about three months to live. after british foreign secretary saw al-megrahi on tv said this, i think the appearance of megrahi on our television screens is a great reminder of a great mistake that was made when he was